Levi Strauss: North American jeans no longer fit company

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San Francisco-based Levi Strauss & Co. is shifting all of its jeans making away from the United States and Canada, eliminating about 2,000 jobs. Its jeans will now be made by contractors in other countries.

Levi Strauss says it plans to close its sewing and finishing operations in San Antonio by year-end, displacing approximately 800 workers. Its three Canadian facilities -- two sewing plants in Edmonton, Alberta, and Stoney Creek, Ontario, and a finishing center in Brantford, Ontario -- are expected to close in March 2004, displacing approximately 1,180 employees.

"We're in a highly competitive industry where few apparel brands own and operate manufacturing facilities in North America. In fact, we are one of the last companies to do so," says Phil Marineau, Levi's CEO in a written statement. "In order to remain competitive, we need to focus our resources on product design and development, sales and marketing and our retail customer relationships."

The company says it intends to offer a comprehensive separation package to help employees make a transition to new opportunities. The details of the separation packages for both Canadian and U.S. employees will be determined through upcoming discussions with unions.

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